The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions via individual wallets will not require registration or regulation as a broker. This stance is reflected in the agency's latest staff statement on crypto, which aims to facilitate the industry's progress in the absence of permanent rules. The SEC staff stated that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with the agency's recent position that developers should be able to create software without triggering such regulations. To avoid regulatory oversight, interface creators can take measures such as not soliciting investors for specific crypto asset securities transactions and not providing commentary on potential execution routes.
However, if an interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory jurisdiction. The SEC is providing its views as an interim measure while considering regulatory issues related to crypto asset securities activities and the feedback received.
Under the current administration, the SEC has shifted its stance on crypto regulation, embracing the technology and working on rules to provide greater certainty. The agency is also developing wide-ranging rules, which are nearing the proposal stage, while the Senate works on the Clarity Act to cement crypto regulations into law.